Interpublic shares drop after worse than expected results
NEW YORK - Interpublic Group's share price dropped 7% on Thursday after it posted a bigger than expected first quarter loss of $132.8m (£67.2m).
The loss was an improvement on the company's performance a year ago, when it recorded a loss of $182.1m.
Revenues for the holding group, which owns agencies including McCann Erickson, Draft FCB and Initiative, rose 2.4% year-on-year to $1.36bn.
Organic growth was 1.6%, which is behind US rival Omnicom's current 7.3%.
The regions registering organic growth were the US and the UK, but there were declines in continental Europe and Asia Pacific.
The amount the company spent on salaries and related expenses was up 4% to $989m.
Michael Roth, chairman and chief executive, said: "We will continue to assist our operating units by developing our talent base and investing in emerging markets and digital capabilities.
"Going forward, we must increase the rate of improvement in organic growth, as well as aggressively address staff costs."
The company has a debt pile of $2.3bn, virtually unchanged from the end of 2006.
Interpublic's share price fell 93 cents to $12.01, but remains well clear of its recent low of under $8 last summer.
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